How you access and spend money abroad can save or cost you hundreds. Here's the complete guide to managing money on the road.
The Best Travel Credit Cards
Look for cards with:
- No foreign transaction fees: Standard 3% fees add up fast
- Chip and PIN capability: Required in many countries
- Good rewards on travel purchases: Offset costs
- Travel protections: Trip delay, lost luggage, rental car
Popular options: Chase Sapphire (Preferred or Reserve), Capital One Venture, or no-annual-fee cards like Chase Freedom Unlimited.
Debit Card Strategy
For ATM withdrawals, your debit card matters:
- ATM fee reimbursement: Charles Schwab, Fidelity, some credit unions
- No foreign transaction fee: Check your bank's policy
- Daily limits: Know your withdrawal limits before traveling
The Charles Schwab Investor Checking account is popular with travelers—unlimited ATM rebates worldwide with no foreign transaction fee.
ATM Best Practices
- Use bank ATMs: Inside banks during business hours is safest
- Decline conversion: When asked "convert to your home currency," always decline and pay in local currency
- Withdraw larger amounts: Fewer withdrawals mean fewer fixed fees
- Cover your PIN: Skimming is real
- Check statements: Monitor for fraudulent charges
Cash vs. Card Considerations
The balance depends on destination:
- Developed countries: Cards widely accepted, minimal cash needed
- Developing countries: Cash is often king, especially in markets and small businesses
- Rural areas: Always have cash backup
General rule: Carry enough cash for 2-3 days of typical spending.
Currency Exchange Reality
Currency exchange options from best to worst:
- ATM withdrawal: Usually best rate
- Credit card purchase: Good rate if no foreign transaction fee
- Bank exchange: Often reasonable for major currencies
- Airport exchanges: Terrible rates, avoid except for emergencies
- Hotel exchange: Usually poor rates
- Street money changers: Risk of scams, counterfeit bills
Dynamic Currency Conversion Trap
When paying with a card abroad, you may be asked if you want to pay in your home currency. This is called Dynamic Currency Conversion (DCC). Always say no.
DCC rates include a markup of 3-7% or more. Pay in local currency and let your card do the conversion at the better interbank rate.
Before You Leave
- Notify your bank: Prevent fraud alerts from freezing your card
- Check card expiration: Cards expiring mid-trip are problematic
- Know your PINs: Especially for cash advances in emergencies
- Copy card numbers: Store separately from cards for emergency reference
- Set up mobile banking: Monitor accounts from anywhere
Carrying Money Safely
- Split cash and cards between different locations
- Money belt for backup cards and large amounts
- Don't flash cash in public
- Keep day spending in accessible location, reserves hidden
Digital Payment Options
Apps increasingly useful abroad:
- Apple/Google Pay: Works where contactless accepted
- Wise (formerly TransferWise): Multi-currency account with good rates
- PayPal: Limited but occasionally useful
- Venmo/Zelle: US only